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Well, that explains it...

Man, I hear the folks they interviewed weren't even Iraqi, they were Swedes.
A long-term foreign presence in a country can be unnatural. This has happened in several places with large foreign presence. The economies remained unreformed and distorted to some extent. Educated young people can make more money as drivers for foreign workers than as doctors and civil servants. Despite good intentions and the fine work of humanitarian workers individually, there can be unintended adverse side effects.
Greyhawk, it is a shame that the important things he says are being lost as a result. I think it is very helpful for everyone concerned if they listened to General Dannatt in his own words. At the BBC, he answers the questions about the cheery picked interview and broader issues. You can hear him here and here. The spin from Left and right on this has been interesting to me to no end. Over at my place and The Commissar's I have tried to get discussion about what General Dannatt has said in his own words, but no one seems to want to do that. They just want to use it as a political club to pound the war, or attack anyone that wants to talk about what he has said. Very frustrating. He is spot on in so many of the things he says, but all the talk is about the spin - because the press cannot, as you state, just report what is said in an honest way. Shame. Harumph. Election years.
He does a good job with the barbs from the BBC interviewer. Once again, everyone should listen to him - in the first person. From Left and right, there is something there for everyone. The General's motivations are spot on for everything he said - though you won't read about it, you have to hear it directly from the man. Listen to him a couple of times and you come away with a lot of respect for him.
The first report I heard on that story was this one from NPR:
Britain's most senior soldier has backed away from his remarks that the British Army's presence in Iraq "exacerbates the security problems." Gen. Richard Dannatt was quoted by The Daily Mail as saying that troops should be withdrawn from Iraq "soon."You'd think that if it could prove they weren't liars they'd release the transcript.His statements, which appeared to run contrary to British government policy, sparked a political storm. Gen. Dannatt says that he meant that a phased withdrawal over two or three years is needed.
The Daily Mail, known for its frequent opposition to the government, has refused to issue a transcript of its original interview with the general. Prime Minister Tony Blair said he fully supports Gen. Dannatt, though he said he agreed with the interviews the general gave this morning, not the one that appeared in the newspaper.
But as with the Frist story earlier this month, the fact that the report is a lie won't be mentioned in future coverage. It's a pretty slick trick - change the meaning of what someone says by omitting a word or sentence here or there, then when they respond by saying what they actually said, claim they are "backing off" their earlier statements. You can even make-believe they did it out of fear of the administration (Bush or Blair).
Sleaze journalism at it's worst.